How do you manage your profit levels?. In absence of a huge volatility creating catalyst, would you take whatever the market gives you or you rather wait till your Tp is hit?
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I rather close trade when it hit my profit target
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When it doesn’t hit your profit target? You take partial profits and leave the rest run?..
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Open 2 trades. On the first, set a take profit that is easily reached. On the second, use a trailing-stop. By the time the first order hits TP, the second order has a trailing-stop beyond breakeven. Let the second order run its course; bank the profits from the first.
You can move your stop loss to break even or profit level, while waiting for it to hit your take profit if you feel your trade idea is still valid!
Hopefully I’m understanding the question correctly, but in my opinion one should not trade that way. If you have an open order with a TP target then it should be based on a trading strategy with an idea of why/how price will get there, not set at some level with the hope that a “huge volatility creating catalyst” occurs that pushes price there. We have to trade the market, the market will not come to us. Stop losses should be set at a level that indicates your trading strategy has clearly failed, and the reasons for entering the trade no longer apply. I say trade based on a good strategy and let it play out. If you are constantly second-guessing and exiting positions pre-target, then you’ll have trouble achieving consistency.
It is perfectly valid and very common to have multiple profit targets. For example, a tier-1 TP set at an easily achievable pip gain at which half of the position is liquidated and the other half remains with a trailing stop. This lets traders lock in quick profits, limits risk, and allows a part of the position to run and take whatever the market is willing to give.
Good luck!
What’s your risk management for if the trade moves against you and you’re now stopped out of 2 trades? Do you split your risk % between the two?
Thanks for the question. The answer is “Yes!” My risk factor is 5% applied to equity, which is evenly split between the two separate orders.
Very interesting! Thanks for sharing the insight 
My trades are closed using trailing stops.
The only time I would close a position before that happens is if I was making 8 - 10R on a trade at which time the odds are a reversal is at hand anyway.
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@Johnscott31
But how do you know how many pips to include in your trailing stop?
I’m curious about it. I’ve never used it, because I never understood how many pips to use.
No such calculation needed I just trail the stop at the last low if long - or last high if short.
Granted this approach isn’t suitable for all timeframes, and works better with some markets than others.
But you can get the juice out of a trade this way if there is any, and your out quick enough when things turn.
I’ve discussed this before, but I don’t see the point in profit targets preferring the letting profits run approach until the market tells me other wise.
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@Johnscott31
Is this helpful during fake outs?
I’m currently trading the MA, but it only works after a consolidation period.
But some swings are simple reversals with no consolidation period.
During these types of conditions, there could be several fake outs.
Do you think trailing stops could be helpful in profiting before you get eaten alive during a fake out?
A fake out should never be able to stop me out of a trade - if I’m stopped out it’s no longer fake!
Much of this depends on the way you enter a trade and timeframe too.
I’m a short term swing trader - it’s important to define your style because it affects where you place stops
If I was to become a longer term trader - trades lasting weeks perhaps I’d use a different method.
For example a break of weekly lows if long or weekly highs if short.
Or the lowest low of the past three or five days, or the break of the first pivot low below a moving average.
There are many ways to trail stops even intraday.
It just takes a bit of creativity, and yes much depends how you enter a trade.
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@Johnscott31
Ok, thanks! I may have to try messing around with it and see how it goes. Maybe in demo first! Haha
I have a TP which I set according to my strategy in the same way I have a SL and I would wait to see if either are hit. For longer term trades I might take partial profit at a certain level and leave the rest for a higher TP level.